DoD Awards $2.2M for Fort Stewart Generation Plant Design and Study to Black & Veatch
Contract Overview
Contract Amount: $2,226,998 ($2.2M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2021-08-30
End Date: 2028-12-15
Contract Duration: 2,664 days
Daily Burn Rate: $836/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT A 10 MW GENERATION PLANT AND 35% DESIGN AND VE STUDY AT FORT STEWART, SAVANNAH DISTRICT
Place of Performance
Location: LEAWOOD, JOHNSON County, KANSAS, 66211
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $2.2 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: CONSTRUCT A 10 MW GENERATION PLANT AND 35% DESIGN AND VE STUDY AT FORT STEWART, SAVANNAH DISTRICT Key points: 1. The contract focuses on engineering services for a 10 MW generation plant and a design/feasibility study. 2. Competition was full and open, suggesting a competitive bidding process. 3. The project duration is substantial, spanning over 5 years, indicating a complex undertaking. 4. The award is a delivery order under a larger contract, potentially for ongoing services.
Value Assessment
Rating: fair
The contract value of $2.27 million for a design and study phase appears reasonable for a 10 MW plant. However, without knowing the scope of the '35% design and VE study' or comparable projects, a precise valuation is difficult. The firm fixed-price structure provides cost certainty for this phase.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for the design and study services, ultimately benefiting taxpayers by avoiding inflated costs.
Public Impact
Enhances energy resilience and capacity at Fort Stewart. Supports military operational readiness through reliable power infrastructure. Potential for future construction phases based on study outcomes. Contributes to the local economy through project execution.
Waste & Efficiency Indicators
Waste Risk Score: 83 / 10
Warning Flags
- Long project duration (over 5 years) increases risk of cost overruns or scope creep.
- Reliance on a single delivery order might indicate a broader, potentially less competitive, master contract.
- Potential for unforeseen technical challenges in constructing a generation plant.
Positive Signals
- Full and open competition promotes fair pricing.
- Firm fixed-price contract provides cost control for the awarded scope.
- Focus on energy infrastructure aligns with modernization efforts.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to power generation infrastructure. Spending in this area is often driven by military base modernization, energy security initiatives, and the need for reliable power for critical operations. Benchmarks for similar design and study contracts can vary widely based on plant size and complexity.
Small Business Impact
The contract was awarded to Black & Veatch Special Projects Corp., a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration in subcontracting opportunities.
Oversight & Accountability
The award is a delivery order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle. Oversight would typically involve monitoring progress against milestones, ensuring adherence to the firm fixed-price terms, and verifying the quality of deliverables for the design and study phases.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration.
- Potential for cost escalation over the project timeline.
- Lack of explicit small business participation noted.
- Delivery order structure may obscure overall contract value and competition.
- Complexity of power generation plant construction.
Tags
engineering-services, department-of-defense, ks, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.2 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. CONSTRUCT A 10 MW GENERATION PLANT AND 35% DESIGN AND VE STUDY AT FORT STEWART, SAVANNAH DISTRICT
Who is the contractor on this award?
The obligated recipient is BLACK & VEATCH SPECIAL PROJECTS CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $2.2 million.
What is the period of performance?
Start: 2021-08-30. End: 2028-12-15.
What is the estimated total cost for the full construction of the 10 MW generation plant, and how does the current design/study cost compare as a percentage?
The current award is for the design and study phase, totaling $2.27 million. The total cost for the full construction of a 10 MW plant can range significantly based on technology, location, and specific requirements, but could easily be in the tens of millions of dollars. This $2.27 million represents the initial investment in planning and feasibility, which is a standard practice to de-risk the larger capital expenditure.
What are the key risks associated with the long duration of this project, and what mitigation strategies are in place?
The primary risks of a long project duration include potential escalation of material and labor costs, changes in technology or regulatory requirements, and potential loss of institutional knowledge. Mitigation strategies likely involve phased funding, regular contract reviews, incorporating flexibility clauses for technological updates, and robust project management to maintain focus and control.
How effectively will the '35% design and VE study' ensure optimal value and cost-effectiveness for the eventual full construction?
A 35% design and Value Engineering (VE) study is a critical early-stage process. It aims to identify potential cost savings, optimize functionality, and ensure the design meets performance requirements before significant detailed design or construction commitments are made. Its effectiveness hinges on the thoroughness of the analysis, the expertise of the engineering team (Black & Veatch), and the government's active participation in reviewing and approving VE recommendations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Solicitation ID: W912HN18R0002
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6800 W 115TH STREET SUITE 2200, OVERLAND PARK, KS, 66211
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,226,998
Exercised Options: $2,226,998
Current Obligation: $2,226,998
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $228,603
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912HN19D2003
IDV Type: IDC
Timeline
Start Date: 2021-08-30
Current End Date: 2028-12-15
Potential End Date: 2028-12-15 00:00:00
Last Modified: 2026-01-06
More Contracts from Black & Veatch Special Projects Corp.
- Design and Construction Management Services TAS::72 1037::TAS — $87.6M (Agency for International Development)
- PMO (level of Effort) — $77.9M (Department of Defense)
- Biological Threat Reduction Program (btrp) Ukraine — $77.2M (Department of Defense)
- Program Management — $52.0M (Department of Defense)
- Program Mangement. Igf::ot::igf — $40.4M (Department of Defense)
View all Black & Veatch Special Projects Corp. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)